December 16, 2008

 

 

MEMORANDUM TO THE TRUSTEES

 

FROM THE PRESIDENT and CHIEF EXECUTIVE OFFICER

 

            SUBJECT:     Approved Budget and Financial Plan

Information Pursuant to Regulations

of the Office of the State Comptroller

 

SUMMARY

 

In accordance with regulations of the Office of the State Comptroller (“OSC”), the Trustees are requested to approve a 2009 annual budget and four-year financial plan and authorize: (i) making the approved budget and four-year financial plan available for public inspection at not less than five convenient public places throughout New York State; (ii) submitting the approved budget and four-year financial plan to OSC and (iii) posting the approved budget and four-year financial plan on the Authority’s website.

 

BACKGROUND

 

                     OSC implemented new regulations in March 2006 that address the preparation of annual budgets and four-year financial plans by “covered” public authorities, including the Authority.  (See 2 NYCRR Part 203 (“Part 203”), attached as Exhibit “A.”)  These regulations establish various procedural and substantive requirements, discussed below, relating to the budgets and financial plans of public authorities.

 

DISCUSSION

 

Part 203 sets forth specific requirements in connection with submitting, formatting, preparing supporting documentation for and monitoring annual budgets and financial plans of public authorities.  On September 23, 2008, the Trustees approved for public release the Authority’s proposed 2009 budget and four-year financial plan pursuant to Part 203.

 

Under Part 203, it is now necessary and appropriate for the Trustees to adopt an approved 2009 budget and four-year plan (attached as Exhibit “B”).  The approved 2009 budget and four-year plan must be available for public inspection not less than seven days before the commencement of the next fiscal year and the availability for public inspection must be for a period of not less than 45 days and in not less than five convenient public places throughout the State.  The approved budget and four-year plan must be submitted to OSC, via electronic filing through the Public Authorities Reporting Information System maintained by OSC and the Authority Budget Office, within seven days of approval by the Trustees.  The regulations also require the Authority to post the proposed budget and four-year financial plan on its website.

 

Under Part 203, each approved budget and four-year financial plan must be shown on both an accrual and cash basis and be prepared in accordance with generally accepted accounting principles; be based on reasonable assumptions and methods of estimation; be organized in a manner consistent with the public authority’s programmatic and functional activities; include detailed estimates of projected operating revenues and sources of funding; contain detailed estimates of personal service expenses related to employees and outside contractors; list detailed estimates of non-personal service operating expenses and include estimates of projected debt service and capital project expenditures. 

           

Other key elements that must be incorporated in each approved budget and four-year financial plan are a description of the budget process and the principal assumptions, as well as a self-assessment of risks to the budget and financial plan.  Additionally, the approved budget and financial plan must include a certification (Exhibit “C”) by the Chief Operating Officer (defined as the executive officer responsible for overseeing the day-to-day activities of an authority) that, to the best of his or her knowledge and belief after reasonable inquiry, the proposed budget and financial plan are based on reasonable assumptions and methods of estimation and that the Part 203 regulations have been satisfied.

 

Finally, as indicated in the proposed budget and four-year financial plan, the approved budget and four-year financial plan uses updated estimates of generation, fuel prices, electric prices, operation and maintenance expenses, capital costs and other revenue and expense items. The approved budget and four-year financial plan includes a section discussing the differences between the proposed and approved budget and four-year financial plan. 

 

FISCAL INFORMATION

 

            There is no anticipated fiscal impact.

 

RECOMMENDATION

 

The Acting Senior Vice President – Corporate Planning and Finance recommends that the Trustees approve the 2009 annual budget and four-year financial plan and authorize: (i) making the approved budget and four-year financial plan available for public inspection at no less than five convenient public locations throughout New York State; (ii) submitting the approved budget and four-year financial plan to the Office of the State Comptroller in the prescribed format and (iii) posting the approved budget and four-year financial plan on the Authority’s website.

 

            The Executive Vice President and General Counsel, the Executive Vice President and Chief Financial Officer and I concur in this recommendation.

 

           


 

 

The attached resolution is recommended for adoption.

 

 

 

                                                                        Richard M. Kessel

                                                                        President and Chief Executive Officer

 

Att.

Budget Plan


 

R E S O L U T I O N

 

 

            RESOLVED, That pursuant to 2 NYCRR Part 203, the attached 2009 annual budget and four-year financial plan, including its certification by the Chief Operating Officer, is approved in accordance with the attached memorandum of the President and Chief Executive Officer; and be it further

 

RESOLVED, That pursuant to 2 NYCRR Part 203, the Corporate Secretary be, and hereby is, authorized to make the approved budget and four-year financial plan available for public inspection at not less than five convenient public places throughout New York State, submit the approved budget and four-year financial plan to the Office of the State Comptroller in the prescribed format and post the approved budget and four-year financial plan on the Authority’s website; and be it further 

 

RESOLVED, That the Chairman, the President and Chief Executive Officer, the Chief Operating Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things and take any and all actions and execute and deliver any and all agreements, certificates and other documents to effectuate the foregoing resolution, subject to the approval of the form thereof by the Executive Vice President and General Counsel.